Question

How I owe state tax from previous state after I put in my w2 in current state?

Forum|Forum|3 years ago
February 19, 2023
1 reply
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I moved from CA to NY sometime around June this year for my current job (actually, my first full-time job). Before that, I did a student job in college and had W2 for that. After putting in the W2 for my current job in NY, in which I earned way more than my student job in CA, I found myself owing CA taxes in turbo tax. This didn't change after I prepare my state tax in turbo tax and put in the correct W2 amount for each state. Why this would happen I suppose each state only taxes what's earned as a resident in the state. How come I owe CA taxes for my income in NY?

M

MonikaK1

When you move from one state to another during the year, you will normally need to file part-year resident returns for each state. Complete the former state return first. Then, complete the return for the state where you resided at the end of the year. TurboTax can calculate any credit allowed by New York for taxes paid to California.

TurboTax may be showing California tax on New York income if you prepared the California return last, or didn't complete all of the state interview questions. If you completed the New York return first and then California, delete the state returns and prepare them again completing the California return first.

Also, check your entries in the Personal Info section of the Federal return to be sure you have entered the correct information about your locations and the date you moved to New York, and answer all of the interview questions for both states.

See this TurboTax article and this one on multiple-state situations.

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Z

zhh083Author

Thanks! I checked and make sure my info are filled and I filled in the state with CA first. I experimented a bit by having my CA w2 put after my NY W2 and found my CA tax owe increased dramatically (I have some interest payment earned while I am in CA so I understand I owe CA state tax because of it). Is that because my CA employee not withholding enough or is the CA state tax rate is based on the full-year income since I earned a lot more in my NY W2?

JohnB5677

Your employer may not have withheld enough taxes for CA, but we'll try to determine a correct end result.

Please check these areas:

In your Personal Info be sure NY is your State of residence, and the Yes box asking if you lived in another state is checked.
Enter CA as your previous residence and enter the date that you moved. Then complete the interview.
Review your W-2's an ensure that only one state appears on each W-2. One for CA and one for NY.
Go back to both states and confirm that they both show Part Year Resident.
Go through each states interview and confirm that you didn't allocate an incorrect amount to either state.

If this does not completely answer your question, please contact us again and provide some additional details.

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